ARM Cement to sell major stake to Foreign Investor

MANUFACTURING & CONSTRUCTION

NSE Listed cement maker ARM Cement is in discussions with an international institutional investor over a Sh12.78 billion [$125 million] investment, it announced yesterday.

The deal will be in form of preference shares which may be converted into an equity stake.

“Discussions are still ongoing and further details of the investment shall be made available to the shareholders of the company and the public in due course,” read the statement.

The process will also be subjected to an internal investor approval and shareholders through an extra-ordinary general meeting.

Investors were urged to take caution in dealing with the counter at the Nairobi Securities Exchange.

ARM is among 13 NSE-listed companies that have issued profit warnings, meaning their net earnings will be at least 25 per cent less than last year’s.